Government approves Reliance’s $ 1.53 billion Krishna Godavari D6 Satellite field plan

Awaiting since two years, Reliance Industries has finally got approval of  $ 1.529 billion plan to produce over 10 million standard cubic meters per day of gas from four satellite fields in the flagging Krishna Godavri (KG)-D6 block. The amount will be utilized in the development of near by four regions, and this will help in producing 110.36 million cubic metres of gas per day. The regions included in the development scheme includes D2, D6, D19 AND D22. Of these, D-1 and D-3 — the largest among the lot — were brought into production from April, 2009, but output has fallen sharply from 54 mmcmd, in March, 2010, to 28.16 mmcmd this month.From the past 18 months the production of D6 block has declined by 40%, and is presently producing 3.4 crore cubic metre gas per day.

RIL and its partners, BP Plc of UK and Niko Resources of Canada, are likely to start producing natural gas from the four fields around mid-2016, Minister of State for Petroleum and Natural Gas R P N Singh said today.

Reliance industry operates through three business segments: petrochemicals, refining, and oil and gas, other segment of the company includes textile, retail business, special economic zone (SEZ) development and telecom/broadband business.